Output of Silicon-Manganese Alloy Stood at 1.0146 million mt in March

SHANGHAI, Apr 11(SMM) - The domestic output of silicon-manganese alloy stood at 1.0146 million mt in March (including 65,000 mt of high-grade silicon manganese, 949,600 mt of regular silico-manganese), up 11% on the month and 7.4% on the year, according to SMM estimate. The domestic output of silicon-manganese alloy stood at 2.8058 million mt from January to March 2022, a decrease of 1.2% year on year. According to SMM research, the domestic output of silicon-manganese alloy rose to a high level in March, which mainly because of the shifted production among different models of SiMn, and those silicon-manganese alloy with less manganese, the costs would be relatively lower. Therefore, under the rising prices of manganese ore and coking coal and met coke, many enterprises turned to produce products with low costs, boosting the output of silicon-manganese alloy. In addition, under the impact of the pandemic, the terminal transport was restricted with poor orders in steel enterprises, resulting in the increases in the inventory of silicon-manganese alloy. The prices of silicon-manganese were flat in March, but the steel mills held firm to the prices supported by the costs. In April, the LME prices of manganese oxide ore remained unchanged from February. In terms of the prices, the costs of picking up goods hovered at a high level with little price fluctuations in the future. Therefore, prices of silicon-manganese alloy may continue to be supported by the costs in the short term. After the pandemic stabilises and the terminal demand releases, the spot prices of silicon-manganese alloy may start to fall.